Taipei: Taiwan petrochemical maker Grand Pacific Petrochemical Corp. (GPPC) announced a strategic partnership with Japanese industrial gas manufacturer Air Water Inc. (AWI) to enter Taiwan's burgeoning semiconductor specialty materials market. Each company has secured a 35 percent stake in Hong-Kuang Hi-Tech Corp., a local specialty gas maker, making them the largest shareholders and aiming to bolster Taiwan-Japan cooperation in this sector.
According to Focus Taiwan, the investment marks a strategic alignment with GPPC's business model, leveraging its chemical industry expertise alongside AWI's capabilities. The two companies held discussions in Osaka on August 18 to plan their collaborative future. GPPC Chairman Sherie Chiu emphasized that this investment is an extension of GPPC's core competencies, rather than a departure from its traditional business operations.
AWI's focus remains on its industrial gases business, utilizing its VSU gas plants and on-site gas supply technology to ensure stability while promoting energy efficiency and reduced costs. The company offers ultra-high-purity bulk and specialty gases and engineering services, with applications in industries such as semiconductors, energy, healthcare, and agri-food. AWI President Yoshihiro Senzai highlighted the semiconductor industry as a strategic focus for the company.
Hong-Kuang Hi-Tech plays a crucial role in Taiwan's semiconductor supply chain, providing high-purity, electronic-grade specialty gases and related technical support. Its products cater to semiconductor wafer manufacturers and the solar and display industries, including gases like fluorocarbons, nitrous oxide, carbon dioxide, and fluorine-nitrogen mixtures.
Additionally, GPPC acquired a 23.4 percent stake in i-TRANS Express Co., Ltd., a logistics provider specializing in hazardous chemicals for the wafer manufacturing supply chain. i-TRANS Express offers comprehensive logistics services, including transportation and distribution.
GPPC stated that the partnership merges international gas expertise with Taiwan's manufacturing strengths to meet the rising demand for high-purity materials in advanced semiconductor processes. This collaboration supports GPPC's strategic transformation, focusing on high-value operations and a shift towards specialty chemicals and electronic-grade materials.
The cross-border partnership was facilitated by CDIB Capital Group, a Taiwanese private equity firm, which played a significant role in its formation. CDIB President Melanie Nan expressed the firm's commitment to Taiwan's core industries like semiconductors and its strategic expansion in global markets including Silicon Valley and Japan, emphasizing CDIB's role in bridging industrial and market opportunities across economies.